Facebook’s parent Meta, whose stock has slumped in value since its last quarterly earnings report, has shrunk in value, but it has given the tech company a chance to steer clear of hurdles posed by antitrust laws.
At the close of U.S. stocks on the 8th, Meta’s shares fell 2.1% to $220.18, with a market value of $599.32 billion, the first time the company’s market value has fallen below $600 billion since May 2020.
It is worth noting that the $600 billion figure is exactly the threshold for the US House of Representatives to design a series of bills against large technology companies, that is, when a platform is regulated and protected by federal law, the company is currently or by US regulators. Must have annual sales or market value of $600 billion in the first 2 years specified. If Meta stays below this market value, it is expected to avoid the obstacles that the law has placed on how to conduct business and reach transactions, and other large US technology companies such as Apple, Microsoft, Alphabet, Amazon, etc. are also bound by these norms. .
Any bill may take a considerable amount of time to pass legislation, the content of the bill can still be amended in the process, and the bill will continue to apply to platform operators for a period of time after the threshold is lower. The U.S. Senate Judiciary Committee recently passed a bill that effectively adopted a market value threshold of $550 billion, lower than the House set.
Such a setting still shows the challenges that lawmakers face in formulating laws for the technology industry. In addition to ensuring that the bill does not lag behind the development of the industry and become outdated when passed, lawmakers must also try to bring a series of related companies into the norm.
For Meta, one of the potentially significant bills is the Platform Competition and Opportunity Act. The proposal prohibits a dominant platform operator from using a potential post-acquisition competitor to Consolidate and expand the market presence of the platform.
Under current FTC rules, Meta is defending an antitrust lawsuit claiming it used its acquisitions of Instagram and WhatsApp to maintain a monopoly. If the Platform Competition and Opportunity Act passes legislation and subject Meta, it could make it harder for the tech company to make similar acquisitions in the future.